Amended in Senate August 31, 2015

Amended in Senate June 18, 2015

Amended in Assembly March 18, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 908


Introduced by Assembly Members Gomez and Burke

(Coauthor: Assembly Member Gonzalez)

February 26, 2015


An act tobegin delete amendend deletebegin insert amend, repeal, and addend insert Section 3301 of the Unemployment Insurance Code, relating to disability compensation, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 908, as amended, Gomez. Disability compensation: family temporary disability insurance.

Existing unemployment compensation disability law provides a formula for determining benefits available to qualifying disabled individuals. For an individual who has quarterly base wages of greater than $1,749.20, the weekly benefit is calculated by multiplying base wages by 55% and dividing the result by 13. For a benefit that is not a multiple of $1, existing law provides that the benefit shall be computed to the next higher multiple of $1. However, existing law provides that this amount may not exceed the maximum workers’ compensation temporary disability indemnity weekly benefit amount.

Under existing law, the family temporary disability insurance program provides up to 6 weeks of wage replacement benefits to workers who take time off work to care for specified persons, or to bond with a minor child within one year of the birth or placement of the child in connection with foster care or adoption. Existing law defines “weekly benefit amount” for purposes of this program to mean the amount of benefits available to qualifying disabled individuals pursuant to unemployment compensation disability law.

This bill would require the family temporary disability insurance program to provide up tobegin delete 10end deletebegin insert 8end insert weeks of wage replacement benefitsbegin insert on and after January 1, 2018end insert. This bill would, for purposes of this programbegin insert on and after January 1, 2017end insert, require the weekly benefit amount to be calculated with a specified formula. However, the amount would be prohibited from being less than $250begin insert, except as specified,end insert and more than the maximum workers’ compensation temporary disability indemnity weekly benefit amount, as specified.

Under existing law, workers are required to pay contributions to the Unemployment Compensation Disability Fund, a special fund in the State Treasury, and those funds are continuously appropriated for the purpose of providing disability benefits and making payment of expenses in administering those provisions.

This bill, by authorizing an increase in the expenditure of money from the Unemployment Compensation Disability Fund, would make an appropriation.

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 3301 of the end insertbegin insertUnemployment Insurance
2Code
end insert
begin insert is amended to read:end insert

3

3301.  

(a) (1) The purpose of this chapter is to establish, within
4the state disability insurance program, a family temporary disability
5insurance program. Family temporary disability insurance shall
6provide up to six weeks of wage replacement benefits to workers
7who take time off work to care for a seriously ill child, spouse,
8parent, grandparent, grandchild, sibling, or domestic partner, or
9to bond with a minor child within one year of the birth or placement
10of the child in connection with foster care or adoption.

11(2) Nothing in this chapter shall be construed to abridge the
12rights and responsibilities conveyed under the CFRA or pregnancy
13disability leave.

14(b) An individual’s “weekly benefit amount” shall be the amount
15provided in Section 2655. An individual is eligible to receive
P3    1family temporary disability insurance benefits equal to one-seventh
2of his or her weekly benefit amount for each full day during which
3he or she is unable to work due to caring for a seriously ill or
4injured family member or bonding with a minor child within one
5year of the birth or placement of the child in connection with foster
6care or adoption.

7(c) The maximum amount payable to an individual during any
8disability benefit period for family temporary disability insurance
9shall be six times his or her “weekly benefit amount,” but in no
10case shall the total amount of benefits payable be more than the
11total wages paid to the individual during his or her disability base
12period. If the benefit is not a multiple of one dollar ($1), it shall
13be computed to the next higher multiple of one dollar ($1).

14(d) No more than six weeks of family temporary disability
15insurance benefits shall be paid within any 12-month period.

16(e) An individual shall file a claim for family temporary
17disability insurance benefits not later than the 41st consecutive
18day following the first compensable day with respect to which the
19claim is made for benefits, which time shall be extended by the
20department upon a showing of good cause. If a first claim is not
21complete, the claim form shall be returned to the claimant for
22completion and it shall be completed and returned not later than
23the 10th consecutive day after the date it was mailed by the
24department to the claimant, except that such time shall be extended
25by the department upon a showing of good cause.

26(f) This section shall becomebegin delete operative on July 1, 2014.end delete
27begin insert inoperative and shall be repealed on January 1, 2017.end insert

28begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 3301 is added to the end insertbegin insertUnemployment Insurance
29Code
end insert
begin insert, to read:end insert

begin insert
30

begin insert3301.end insert  

(a) (1) (A) The purpose of this chapter is to establish,
31within the state disability insurance program, a family temporary
32disability insurance program. Family temporary disability
33insurance shall provide wage replacement benefits to workers who
34take time off work to care for a seriously ill child, spouse, parent,
35grandparent, grandchild, sibling, or domestic partner, or to bond
36with a minor child within one year of the birth or the placement
37of the child in connection with foster care or adoption.

38(B) Before January 1, 2018, up to six weeks of wage replacement
39benefits shall be provided.

P4    1(C) On and after January 1, 2018, up to eight weeks of wage
2replacement benefits shall be provided.

3(2) Nothing in this chapter shall be construed to abridge the
4rights and responsibilities conveyed under the CFRA or pregnancy
5disability leave.

6(b) An individual is eligible to receive family temporary
7disability insurance benefits equal to one-seventh of his or her
8weekly benefit amount for each full day during which he or she is
9unable to work due to caring for a seriously ill or injured family
10member or bonding with a minor child within one year of the birth
11or the placement of the child in connection with foster care or
12adoption.

13(c) (1) Before January 1, 2018, the maximum amount payable
14to an individual during any disability benefit period for family
15temporary disability insurance shall be six times his or her “weekly
16benefit amount,” but in no case shall the total amount of benefits
17payable be more than the total wages paid to the individual during
18his or her disability base period.

19(2) On and after January 1, 2018, the maximum amount payable
20to an individual during any disability benefit period for family
21temporary disability insurance shall be eight times his or her
22“weekly benefit amount,” but in no case shall the total amount of
23benefits payable be more than the total wages paid to the individual
24during his or her disability base period.

25(d) (1) Before January 1, 2018, no more than six weeks of family
26temporary disability insurance benefits shall be paid within any
2712-month period.

28(2) On and after January 1, 2018, no more than eight weeks of
29family temporary disability insurance benefits shall be paid within
30any 12-month period.

31(e) An individual shall file a claim for family temporary
32disability insurance benefits not later than the 41st consecutive
33day following the first compensable day with respect to which the
34claim is made for benefits, which time shall be extended by the
35department upon a showing of good cause. If a first claim is not
36complete, the claim form shall be returned to the claimant for
37completion and it shall be completed and returned not later than
38the 10th consecutive day after the date it was mailed by the
39department to the claimant, except that such time shall be extended
40by the department upon a showing of good cause.

P5    1(f) For purposes of this chapter, an individual’s “weekly benefit
2amount” shall be as follows:

3(1) When the amount of wages paid to the individual for
4employment by employers during the quarter of the individual’s
5disability base period in which these wages were highest is not
6more than four thousand sixty three dollars ($4,063), then two
7hundred fifty dollars ($250), except that the weekly benefit amount
8shall not exceed the amount of wages paid to the individual during
9the quarter of the person’s disability base period in which these
10wages were highest divided by 13.

11(2) When the amount of wages paid to the individual for
12employment by employers during the quarter of the individual’s
13disability base period in which these wages were highest is more
14than four thousand sixty three dollars ($4,063), but not more than
15five thousand dollars ($5,000), then 80 percent of the amount of
16wages paid to the individual for employment by employers during
17the quarter of the individual’s disability base period in which these
18wages were highest, divided by 13. If the weekly benefit amount
19is not a multiple of one dollar ($1), it shall be computed to the next
20higher multiple of one dollar ($1).

21(3) When the amount of wages paid to the individual for
22employment by employers during the quarter of the individual’s
23disability base period in which these wages were highest is more
24than five thousand dollars ($5,000), but is not more than fifteen
25thousand dollars ($15,000), then either (A) three hundred eight
26dollars ($308) or (B) 75 percent of the amount of wages paid to
27the individual for employment by employers during the quarter of
28the individual’s disability base period in which these wages were
29highest divided by 13, whichever amount is greater. If the weekly
30benefit amount is not a multiple of one dollar ($1), it shall be
31computed to the next higher multiple of one dollar ($1).

32(4) Except as provided in paragraph (5), when the amount of
33wages paid to the individual for employment by employers during
34the quarter of the individual’s disability base period in which these
35wages were highest exceeds fifteen thousand dollars ($15,000),
36then either (A) eight hundred sixty five dollars ($865) or (B) 65
37percent of the amount of wages paid to the individual for
38employment by employers during the quarter of the individual’s
39disability base period in which these wages were highest divided
40by 13, whichever amount is greater. If the weekly benefit amount
P6    1is not a multiple of one dollar ($1), it shall be computed to the next
2higher multiple of one dollar ($1).

3(5) An individual’s “weekly benefit amount” shall not exceed
4the maximum workers’ compensation temporary disability
5indemnity weekly benefit amount established by the Department
6of Industrial Relations pursuant to Section 4453 of the Labor Code.

7(g) This section shall become operative on January 1, 2017.

end insert
begin delete
8

SECTION 1.  

Section 3301 of the Unemployment Insurance
9Code
is amended to read:

10

3301.  

(a) (1) The purpose of this chapter is to establish, within
11the state disability insurance program, a family temporary disability
12insurance program. Family temporary disability insurance shall
13provide up to 10 weeks of wage replacement benefits to workers
14who take time off work to care for a seriously ill child, spouse,
15parent, grandparent, grandchild, sibling, or domestic partner, or
16to bond with a minor child within one year of the birth or the
17placement of the child in connection with foster care or adoption.

18(2) Nothing in this chapter shall be construed to abridge the
19rights and responsibilities conveyed under the CFRA or pregnancy
20disability leave.

21(b) An individual is eligible to receive family temporary
22disability insurance benefits equal to one-seventh of his or her
23weekly benefit amount for each full day during which he or she is
24unable to work due to caring for a seriously ill or injured family
25member or bonding with a minor child within one year of the birth
26or the placement of the child in connection with foster care or
27adoption.

28(c) The maximum amount payable to an individual during any
29disability benefit period for family temporary disability insurance
30shall be 10 times his or her “weekly benefit amount,” but in no
31case shall the total amount of benefits payable be more than the
32total wages paid to the individual during his or her disability base
33period.

34(d) No more than 10 weeks of family temporary disability
35insurance benefits shall be paid within any 12-month period.

36(e) An individual shall file a claim for family temporary
37disability insurance benefits not later than the 41st consecutive
38day following the first compensable day with respect to which the
39claim is made for benefits, which time shall be extended by the
40department upon a showing of good cause. If a first claim is not
P7    1complete, the claim form shall be returned to the claimant for
2completion and it shall be completed and returned not later than
3the 10th consecutive day after the date it was mailed by the
4department to the claimant, except that such time shall be extended
5by the department upon a showing of good cause.

6(f) For purposes of this chapter, an individual’s “weekly benefit
7amount” shall be as follows:

8(1) When the amount of wages paid to the individual for
9employment by employers during the quarter of the individual’s
10disability base period in which these wages were highest is not
11more than four thousand sixty three dollars ($4,063), then two
12hundred fifty dollars ($250).

13(2) When the amount of wages paid to the individual for
14employment by employers during the quarter of the individual’s
15disability base period in which these wages were highest is more
16than four thousand sixty three dollars ($4,063), and does not exceed
1725 percent of the amount of the annual full-time minimum wage
18level, then 80 percent of the amount of wages paid to the individual
19for employment by employers during the quarter of the individual’s
20disability base period in which these wages were highest, divided
21by 13. If the weekly benefit amount is not a multiple of one dollar
22($1), it shall be computed to the next higher multiple of one dollar
23($1).

24(3) When the amount of wages paid to the individual for
25employment by employers during the quarter of the individual’s
26disability base period in which these wages were highest exceeds
2725 percent of the amount of the annual full-time minimum wage
28level, but does not exceed 75 percent of the amount of the annual
29full-time minimum wage level, then either (A) 20 percent of the
30annual full-time minimum wage level divided by 13 or (B) 75
31percent of the amount of wages paid to the individual for
32employment by employers during the quarter of the individual’s
33disability base period in which these wages were highest divided
34by 13, whichever amount is greater. If the weekly benefit amount
35is not a multiple of one dollar ($1), it shall be computed to the next
36higher multiple of one dollar ($1).

37(4) Except as provided in paragraph (5), when the amount of
38wages paid to the individual for employment by employers during
39the quarter of the individual’s disability base period in which these
40wages were highest exceeds 75 percent of the amount of the annual
P8    1full-time minimum wage level, then either (A) 56.25 percent of
2the annual full-time minimum wage level divided by 13 or (B) 65
3percent of the amount of wages paid to the individual for
4employment by employers during the quarter of the individual’s
5disability base period in which these wages were highest divided
6by 13, whichever amount is greater. If the weekly benefit amount
7is not a multiple of one dollar ($1), it shall be computed to the next
8higher multiple of one dollar ($1).

9(5) An individual’s “weekly benefit amount” shall not exceed
10the maximum workers’ compensation temporary disability
11indemnity weekly benefit amount established by the Department
12of Industrial Relations pursuant to Section 4453 of the Labor Code.

13(g) For purposes of this chapter, the “annual full-time minimum
14wage level” means 2,000 hours multiplied by the hourly minimum
15wage in effect pursuant to Section 1182.12 of the Labor Code.

end delete


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